SAM's New York Cannabis Critique Contradicts State Data

Smart Approaches to Marijuana (SAM), the nation's leading anti-legalization advocacy group, released a report this week claiming New York's adult-use cannabis program is failing—but state data tells a more complicated story.

The organization's latest policy paper highlights concerns about illegal market persistence and youth access, arguments that have become central to SAM's national campaign against legalization. Yet several key claims in the report appear to overstate what current evidence actually demonstrates about New York's two-year-old program.

"SAM's critique raises legitimate policy questions that regulators should address," said Dr. Kevin Sabet, the group's president and co-founder, in the report. "But we need to be honest about what the data shows and what it doesn't."

The Numbers Tell a Different Story

New York's Office of Cannabis Management has issued over 150 adult-use retail licenses since the first legal sales began in December 2022. The state collected $87 million in cannabis tax revenue in the first nine months of 2024, according to OCM's most recent quarterly report—a 340% increase over the same period in 2023.

SAM's report emphasizes the slow rollout and continued illicit market activity. But those figures don't account for the state's deliberate equity-first licensing approach, which prioritized applicants with prior cannabis convictions and entrepreneurs from communities disproportionately affected by prohibition.

"Every state that has legalized has dealt with illicit market transition," said Chris Alexander, executive director of the New York Cannabis Retail Association. "The question isn't whether illegal shops exist. It's whether the legal market is growing and serving consumers safely—and by that measure, New York is making progress."

What SAM Gets Right

The organization's concerns about enforcement aren't entirely unfounded. New York City alone has seen hundreds of unlicensed storefronts open since legalization passed in 2021, many operating openly despite lacking state permits. Mayor Eric Adams has made illegal shop closures a priority, conducting over 1,200 enforcement actions in 2024.

SAM also points to a 2023 survey showing a slight uptick in youth cannabis use—from 19% to 21% among high school students. But that data comes with caveats: the survey was conducted just months after legal sales began, long before most licensed retailers opened. And the increase falls within the study's margin of error.

"We're tracking youth use closely," said OCM spokesperson Aaron Ghitelman. "But two years isn't enough time to draw definitive conclusions about legalization's long-term effects on adolescent consumption patterns."

The Bigger Picture

SAM has released similar reports criticizing cannabis programs in Colorado, California, and Washington over the past five years. The organization, which receives funding from several anti-drug foundations, argues that legalization has failed to deliver on promises of eliminating black markets and generating tax revenue.

Yet New York's program faces unique challenges that other states didn't encounter. The COVID-19 pandemic delayed implementation by over a year. Albany's decision to allow home cultivation before opening retail stores created supply chain complications. And the state's equity requirements—while laudable—added complexity to an already difficult licensing process.

"SAM's framing assumes legalization should solve every problem immediately," Alexander said. "That's not realistic policy analysis. It's advocacy dressed up as research."

What Comes Next

Governor Kathy Hochul's 2025 budget proposal includes $5 million in additional funding for cannabis enforcement and another $3 million for youth prevention programs—a direct response to concerns about illegal operators and underage access.

OCM also plans to issue 200 additional retail licenses by mid-2025, with priority given to social equity applicants. The agency expects legal market sales to exceed $1 billion annually once the full complement of licensed stores opens.

Whether those projections materialize remains to be seen. But the current evidence suggests New York's cannabis program is evolving, not failing—even if that evolution looks messier than advocates initially promised.

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This article is based on original reporting by hightimes.com.